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Oct28

Unused Vacation Time

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Are employees entitled to unused vacation time if they terminate their employment with the company?

This depends upon the state the employee works in. Some states, such as California and Illinois, always require employers to pay workers for unused vacation at termination.

Other states, such as Minnesota and New York, permit employers to not pay workers for vacation upon termination, only if there is a written policy in place that specifies the conditions under which vacation pay is forfeited. Many companies have a policy that only employees who give 2 weeks notice are entitled to vacation pay.

Other states, such as Texas, never require an employer to pay terminated workers for vacation. In these states, a few companies do offer vacation pay upon termination, but it is strictly a matter of company policy.

To check your state, search our archives. If you cannot find an article about your state, post a question that specifies which state you are in.

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This entry was posted on Tuesday, October 28th, 2008 at 10:45 am and is filed under
Human Resources Management, Termination.
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